The Pound Sterling to Euro (GBP/EUR) exchange rate edged higher by around 0.15% on Friday morning.
After British labour market data produced mostly positive results, the Pound advanced versus many of its most traded currency rivals on Friday. The appreciation has been somewhat slowed, however, with continued investor reluctance ahead of the general election.
The shared currency, meanwhile, ticked higher versus many of its major peers after domestic data fell in line with forecast figures. Ongoing geopolitical tensions in Greece are still weighing on investor confidence, however, which is likely to slow the advance.
The Pound Sterling to Euro (GBP/EUR) exchange rate is currently trending in the region of 1.3893.
Pound Sterling (GBP) Exchange Rate Climbs on Jobs Data
British labour market data produced mostly positive results on Friday, causing the Pound to advance versus most of its major competitors. The Jobless Claim Rate hit a 40 year low, unemployment fell in line with economists’ predictions and wages (ex bonus) climbed.
The head of the International Monetary Fund, Christine Lagarde, praised the British government’s economic strategy, adding that UK authorities managed to provide the right balance of spending cuts and revenue raising.
‘Generally in any election year, the teams that provide the hypotheticals on which future deficits are forecast, err on the side of caution and assume that whatever is announced is not necessarily or inevitably going to happen,’ she said.
‘It’s clearly also delivering results, because when we look at the comparative growth rates delivered by various countries in Europe, it’s obvious that what’s happening in the UK has actually worked,’ she added.
The Pound Sterling to Euro (GBP/EUR) exchange rate dropped to a low today of 1.3846.
Euro (EUR) Exchange Rate Gradually Strengthens despite Greek Woes
With the situation in Greece far from abating, and with economists building scenarios as to the effect of a Grexit on the currency market, the shared currency is unlikely to sustain any gains for an extended period. However, Friday has seen the common currency appreciate, albeit fractionally, after domestic data met with forecast figures.
March’s Eurozone Consumer Price Index came in at -0.1% on the year. On the month, however, Eurozone CPI increased from 0.6% to 1.1% in March. Additionally, Eurozone Core CPI met with the median market forecast of 0.6% on the year.
‘Even if the Eurozone does imminently exit deflation, it may still prove to be a hard slog to get Eurozone consumer price inflation back up to the ECB’s target rate of ‘close to, but just below 2pc,’ said Howard Archer of IHS Global. ‘Much will depend on how oil prices and the Euro develops, as well as how robust recovery proves to be.’
Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast to Hold Gains
With the situation in Greece still weighing heavily on trader confidence, the Pound Sterling to Euro (GBP/EUR) exchange rate is likely to hold gains for the remainder of the European session. The Pound is unlikely to appreciate significantly, however, as political uncertainty anchors movement.
The Pound Sterling to Euro (GBP/EUR) exchange rate advanced to a high of 1.3902 today.
